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Ms Bladon, 20, a student at the University of Birmingham, had been on an exchange programme with the Rothberg International School at Hebrew University of Jerusalem since January.

Israeli officers block access to the tram (Image: REUTERS)

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Police detained a 57-year-old man at the scene, and Superintendent Micky Rosenfeld said the attack was carried out by an "Arab terrorist" from Rasel Amud, in east Jerusalem.

President Reuven Rivlin said he was "filled with sadness" about Ms Bladon's death, saying Israel's "thoughts and prayers are with the family of the victim".

He said: "This week thousands have come through the ancient gates of Jerusalem, to celebrate the feasts of Passover and Easter throughout the city - while the security forces work to ensure the safety of the dear residents and visitors to the city.

"And so we will continue to do. Terror can never overcome us. Terror will never destroy our lives here."

Israeli intelligence services Shin Bet said the attacker had a history of mental illness, that he recently tried to commit suicide in hospital by swallowing a razor blade and that he was convicted of sexually abusing his daughter in 2011.

Israeli health team workers arrive at site to treat the wounded British tourist (Image: Mostafa Alkharouf /Anadolu Agency/Getty Images)

It said: "This is not the first time that a Palestinian suffering from personal, mental or moral distress has chosen to commit a terrorist attack in order to escape his problems."

The Board of Deputies of British Jews tweeted its condolences, saying: "Our hearts go out to family of the British woman murdered by a terrorist in Jerusalem, an unholy attack as city marks Passover & Good Friday".

The Jewish Leadership Council added: "We are horrified to hear of the murder of a British tourist near Old City of Jerusalem at a time of faith & peace. Send deepest sympathies."

It said: "The Hebrew University and the Rothberg International School express our deep sorrow over the murder of a British student, Hannah Bladon, in today's attack.

"We extend our deepest condolences to her family and we share in their sorrow.

"The university condemns such acts of terror that harm innocent people, and especially a student who came to Jerusalem to study and widen her academic horizons.

Paramedics treat the wounded after being attacked on a tram in Jerusalem (Image: Mostafa Alkharouf /Anadolu Agency/Getty Images)

"The university administration and staff will provide all necessary support to students, faculty members and their families in Israel and around the world.

"Hannah Bladon came to the Hebrew University as part of a student exchange from the University of Birmingham.

"Hannah began her studies here at the end of January 2017 and was supposed to continue her studies until the end of the current semester."

Two other travellers were also injured during the incident, after the tram was forced to make an emergency stop.

A pregnant woman suffered an injury to her stomach as the brakes were applied, and a man in his fifties was also injured, according to the Jerusalem Post .